They sort of have to - if they hand over user data, it will be a huge blow to their current and future business.
Business wise they should to do this, yes, but that still doesn't mean it's an easy "they sort of have to" situation.
The law in question was pretty much created to stop Airbnb-style short-term rentals.
I'm not a proponent of AirBnB's business model, but I can understand their attempt a refusal.